Mamata announces ‘safe savings scheme’ for small depositors

Our Bureau Updated - September 05, 2013 at 09:25 PM.

The West Bengal Government on Thursday announced the introduction of a State-sponsored savings scheme.

Called “safe savings scheme”, it will come into operation from October 5.

According to the West Bengal Chief Minister, Mamata Banerjee, the scheme has been formulated keeping in mind the interests of small depositors.

It will also help protect them from the various ponzi schemes operating in the State.

“We have kept our promise of protecting the interest of small investors,” Banerjee told reporters at Writers’ Building this evening.

The scheme, she said, is for the economically-weaker sections of the society.

The decision to announce a small savings scheme was made by Banerjee earlier this year, following the Saradha group going bust.

The group (Saradha) had collected money worth a few hundred crores through various ponzi schemes.

Details

According to Banerjee, an individual can deposit an amount ranging from Rs 1,000 to Rs 1,00,000. The deposited amount can go up to Rs 5 lakh in case of a family. The scheme will have a maturity period between one and five years.

“The minimum lock-in period (after which the money can be withdrawn) is three months, keeping in mind the requirements of the economically weaker sections of the society,” she said.

The scheme will bear an interest rate “not less than” term deposits of the nationalised banks (fixed deposits rates).

“Interest rates will not be less that of nationalised banks,” Banerjee said.

The collection of money and subsequent return will be through four nationalised banks - State Bank of India (SBI), Allahabad Bank, UCO Bank and United Bank of India (UBI).

More banks may join later as the State Government had kept the door open for others to join in.

According to Banerjee, full details of the scheme will be made available once it is rolled out.

The scheme will be managed by a State-owned financial corporation and backed by sovereign guarantee, State Finance Minister Amit Mitra said.

abhishek.l@thehindu.co.in

Published on September 5, 2013 15:28